Do we even have a snowballs chance?
We are looking at purchasing our first home for around 90,000.
DTI is at 12%
We have three active trade lines
two auto loans total monthly is $530
one cc montly min pymt is $30, there is no balance on this card
Annual gross income is about 54000
Biggest question is we have one late from Jan 10 on one active tradeline, and
have four lates (Oct'09 Nov'09 Dec'09 Jan'10 yes i know this is bad) on a closed paid in full auto loan.
BK in 2005
Credit scores are 610 EQU, 640 Trans EXP???
is it even worth the trouble???
VA does pull credit.
It would be worth it to start GW letters for the lates. Be honest and explain the reason the lates happened, how you communicated with them (the creditor at the time) and how you need it removed for the purchase of a home.
ps - call the VA and talk to them. They will give you some basic parameters of what they are looking for. They will share information that will help you decide whether to go for it or not, without pulling your credit. But if you want them to, they will pull your credit and tell you over the phone if you are eligible. (Least they did for me when I called to get info.)
VA loan is way easier than you believe. Go to VA website and they will breakdown all the mandatory criteria for lenders. You don't look bad at all. I think your only issue is that late in Jan 2010 because (if I remember right) one of VA criteria is no lates in the past 12 months. They don't care about the entire 7 years but they will look at the past 12 months. So you either need to send a GW, or wait a couple more months. As far as your mid-score, most banks threshold is 620 for VA but many will do loans under that. I did mines a year ago at 603. Good Luck!